Commercial Solar Panel Grants: Everything You Need to Know

Here across Sussex and the South East, more and more businesses are turning to solar power as a way to reduce their carbon footprint and energy bills. While the financial benefits of solar are undeniable, the initial cost of installation can be a hurdle, especially for a large-scale commercial solar project. 

However, using government and local authority grants can help offset these costs and make solar a more accessible option for businesses across East and West Sussex. In this blog post, we’ll explore if there are any commercial solar panel grants currently available in the South East, whether your business can make the most of them, and what are some alternatives if not.

National Grants for Business Solar Panels

Unfortunately, there currently aren’t any national grant schemes specifically for commercial solar panels. However, as of the 1st of February 2024, the UK Government has exempted installing solar battery storage (also known as BESS - Battery Energy Storage Systems) as part of your solar PV system from VAT. 

The legislation covers a range of different Energy Saving Materials (ESMs) such as central heating and hot water systems, draught stripping, insulation, solar panels, wind turbines, water turbines, ground, air & water source heat pumps, micro combined heat and power units, wood-fuelled boilers and smart diverters. However, it’s solar batteries that promise big potential savings to business owners. What’s more, the legislation applies to both new installations and retrofits. Find out about solar batteries and how you can benefit from 0% VAT on installation, or contact us today.

Electric Vehicle Infrastructure Grant for Staff & Fleets

Businesses that own and operate fleet vehicles can receive partial funding from the government to install EV charging infrastructure on their premises. Known as the Electric Vehicle Infrastructure Grant for Staff & Fleets, the grant is for SMEs and gives money off the cost of wider building and installation work that’s needed to install multiple chargepoint sockets.

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The work can be for sockets you want to install now and in the future. For example, an EV infrastructure grant can cover things like wiring and posts. You can receive up to 5 grants across 5 different sites, covering 75% of the cost of the work, up to a maximum of £15,000. You can get:

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• up to £350 per chargepoint socket installed
• up to £500 per parking space enabled with supporting infrastructure

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If you’re undertaking a large investment like this, we recommend considering a solar panel installation at the same time. Using solar to charge fleet or staff vehicles can save money on your energy usage and significantly reduce your CO2 emissions. 

‍Local Authority Solar Grants for Businesses

With no significant national solar energy schemes available, local authorities have increasingly had to step in to provide financial support for renewable energy projects for both private and commercial premises. Up until May 2023, this included the South East New Energy Grants (SENE) scheme. 

This provided capital grants to qualifying businesses in Essex, Kent, and East Sussex to help businesses reduce carbon emissions and improve energy efficiency. However, with tightening budgets, there currently aren’t any schemes we’re aware of to provide grants to businesses. 

However, all is not lost. As we’ve discussed, the VAT exemption on various Energy Saving Materials (ESMs), including solar panels and solar batteries, can still make installing a solar PV system a viable business investment. 

Future Commercial Solar Panel Grant Opportunities

We do, however, expect future governments to increase their focus on renewable energy and provide support for businesses to do so, and we’ll update this page whenever this changes. While there are currently no confirmed grant schemes specifically for commercial solar panels in the South East, several initiatives suggest a continued focus on renewable energy support:

• The Net Zero Strategy: The UK government's Net Zero Strategy outlines a clear commitment to achieving net-zero emissions by 2050. This strategy is likely to include measures to support the growth of renewable energy, potentially leading to future business solar grants for commercial solar.
  
  
• Local Authority Initiatives: Many local authorities in the South East have declared climate emergencies and are actively developing plans to achieve net-zero within their regions. These plans often include support for renewable energy projects, and it's worthwhile to check your local council's website for any upcoming grant opportunities.

Financial Incentives Beyond Business Solar Grants

While grants can significantly reduce the upfront cost of solar panels, there are other financial incentives to consider:

• Enhanced Capital Allowance (ECA): Businesses can claim a 50% first-year capital allowance for the cost of qualifying energy-saving technologies, including solar panels. This means you can deduct some of the cost of the system from your taxable profits in the year it's installed.
  
  
• Feed-in Tariffs (FiTs): Although the FiT scheme for new applications closed in March 2019, existing FiT installations continue to receive payments for the electricity they generate. If your business already has solar panels with a FiT, you'll continue to benefit from this scheme.
  
  However, small generators of solar power - typically, SMEs generating less than 5MW, may be able to benefit from the Smart Export Guarantee and receive money for selling their power back to the grid.

While national commercial solar panel grants are currently unavailable, there are still ways to make solar a financially attractive option for your business in the South East. Even without business solar grants, installing renewable energy generation at your premises can save you money and insulate you from further energy price hikes. If you’re interested in installing commercial solar on your premises in East or West Sussex, don’t hesitate to contact us!

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